The total debt and liabilities of Pakistan have reached 87.2% of Gross Domestic Product (GDP). Details of the debt owed by the Ministry of Finance were tabled in the National Assembly session today. The government has confirmed the increase in the country’s debt by Rs 14,000 billion.
According to a report submitted to the National Assembly, Pakistan’s total debt and liabilities stood at Rs29.8 trillion on June 2018. Whereas the total government debt in 2019 was up to 81.1% of GDP.
However, in 2019, total debt stood at 105.9% of GDP. The report said that Pakistan’s total debt and liabilities surged to Rs44.5 trillion, equivalent to 106.8 percent of GDP till the end of June, 2020.
Minister for Economic Affairs Khusro Bakhtiar told the National Assembly that foreign aid of 3.55 billion was received to deal with Coronavirus in the country.
Debt in PTI Regime
The PTI-led government increased total debt and liabilities to the tune of Rs14.7 trillion in the last two years against the PML-N increase in debt and liabilities to the tune of Rs15 trillion in last year’s tenure. So technically the net increase in debt and liabilities were doubled under the PTI-led regime in comparison with PML-N five-year rule.
The report said that The World Bank provided 300 million dollars for various projects in the country. He said that the International Monetary Fund IMF provided 1.386 billion for budget support. The Asian Development Bank provided 500 million. The Minister of Economic Affairs said that the Asian Development Bank, Japan, China, the United States, the United Kingdom, Canada, and South Korea have provided 99.11 million as an aid.
Debt in Previous Regimes
The Pakistan Muslim League Nawaz increased debt and liabilities from Rs14 trillion to Rs29 trillion in the last five years from Rs2013 to 2018.
Pakistan’s total debt and liabilities stood at Rs6 trillion in 2006-7 and under Pakistan Peoples Party PP rule it increased from Rs 6 trillion to Rs14 trillion from 2007-8 to 2012-13.
Pakistan’s debt and liabilities have been increasing rapidly and according to various reports, it now stands in danger zone.